Taps Coogan – October 3rd, 2020
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The United States federal government fiscal year officially ends every September 30th and that means that FY 2020 is now officially in the books. What a year it has been. Owing to the Covid pandemic and subsequent economic disruptions and stimulus spending, FY 2020 saw the national debt rocket higher by a stunning $4.23 trillion, more than double largest previous annual increase ($1.89 trillion in 2009).
To put $4.23 trillion in perspective, the increase in the national debt this year was 96% the size of all federal spending in FY2019.
With much more economic recovery to go and more fiscal stimulus certain to come, fiscal year 2021 is likely to see only a moderately smaller deficit than 2020, all but guaranteeing the continued meteoric rise of the US debt-to-GDP ratio in coming years.
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